Monthly Income Plans Post Positive Returns

FE Research Bureau | Updated: Apr 30 2004, 05:30am hrs
Monthly Income Plan (MIP) fund schemes are doing well since March 1, 2004. The net asset value (NAV) of 83 MIP funds moved upward, registering positive returns of 0.4 to 3.1 per cent. An analysis of 83 schemes dedicated to equity, debt and money market, show an average positive return of 1.1 per cent between March 1 and April 28, 2004.

Among these, IL&FS MIP-Monthly Dividend Plan leads the pack with the highest positive return of 3.1 per cent during the study period. The funds NAV increased from Rs 10.07 to Rs 10.38. The fund has 17.8 per cent in equity, 68.5 per cent in debt and 13.7 per cent in money market. In debt, IL&FS MIP-Monthly Dividend Plan had the highest investment in IDBI Capital Market Services (10.8 per cent as on March 31) followed by Reliance Industries (9.1 per cent) and BPCL (7.9 per cent). As on Mar 31, 2004, the fund size was at Rs 139.1 crore. Sundaram MIP-Monthly Dividend (2.7 per cent) and Principal MIP-Plus-Growth (2.5 per cent) showed higher return during the study period.

The NAV of Sundaram MIP-Monthly Div increased from Rs 10 on March 1 to Rs 10.27 on April 28. The fund has 9 per cent in equity, 66.8 per cent in debt and 24.2 per cent in money market. The fund size was at Rs 247.2 crore as on Mar 31, 2004. Moreover, the NAV of Principal MIP-Plus-Growth also increased from Rs 9.96 to Rs 10.21 during the same period. The fund has 17.1 per cent in equity, 74.7 per cent in debt and 8.2 per cent in money market as on Mar 31,2004. While the NAV of Reliance MIP-Growth Plan increased from Rs 9.98 to Rs 10.21, UTI-MIS-Growths NAV increased from Rs 11.42 on March 1 to Rs 11.56 on April 28, registering a positive return of 1.23 per cent.

According to Anita Madan, UTI Fund Manager, the net current assets (NCA) have been deployed to yield higher returns as compared to 10-year G-sec. Over the next couple of months these will be deployed across asset classes for maximising returns while minimising volatility in the fund.

The top five in terms of NAV as on April 28 are LICMF Monthly Income Plan - Growth Option (Rs 18.49), FT India MIP - Growth (Rs 16.07), Templeton Monthly Income Plan - Growth (Rs 16.01), Birla MIP-Plan B (Payment) (Rs 15.67) and Birla MIP-Plan C (Growth) (Rs 15.67).